Insurers will be allowed to buy unsecured corporate notes for the first time in an effort to spur economic growth and develop the debt market, Bloomberg reported, citing an unnamed official at the China Insurance Regulatory Commission. The regulator will require that insurers set up internal credit-rating systems before they are allowed to invest in debt that is not backed up by a third party. At present, insurers are only allowed to buy bonds from state companies with guarantees. "This would definitely be good news for the market. The policy shift will also expand investment channels for insurance companies," a bond analyst was quoted as saying.
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